Privacy "Flaw" in Communicator 4.5 Uncovered; Netscape Promises Quick Fix.

NEW YORK--(BUSINESS WIRE)--July 20, 1998--The following was issued by The Basex Group:

Netscape's latest product release, Communicator 4.5, promises its users many improved features, including "the ability to access personal information, such as bookmarks, email and address books, from virtually anywhere on the Net with just a browser."

Netscape explains that the bookmark feature is accessed "via the site", but Basex analyst Jonathan Spira realized that there's more to this than would appear to the casual Communicator user.

"What Netscape is doing," explained Spira, "is having its users upload their personal bookmarks to a centralized Netscape database. Unfortunately, they are not warning their users that this is what's taking place, and also that others (i.e. Netscape) might have access to this highly personal data. The user simply may not realize that he is doing more than accessing a feature in his personal browser software." Netscape's posted policy statement, prominently featured on each page where data might be collected, addresses data collected on forms and in a cookies.txt file, but does not address the new concerns which arise from the just-introduced features.

Organizations concerned with privacy issues on the Net reacted quickly when contacted by Basex. "While there is surely a market for a service and feature of this sort, collecting such a massive and deeply revealing set of data about individuals and how they use the Net raises serious privacy concerns," stated Stanton McCandlish of the Electronic Frontiers Foundation.

"Netscape is, through the Netcenter bookmark feature, creating a unique database from which much can be learned about user's habits on the Net," pointed out Basex analyst David Goldes. He added that, while there are many benefits that the Communicator 4.5 user would accrue, the user has to be made explicitly aware of where his data is going and what might be done with it.

Netscape, when first contacted by Basex, agreed that there is value in such a database but also pointed out that the bookmark service is voluntary and that its Privacy Policy states that Netscape will not share data without the customer's consent. Ken Hickman, Netcenter's product manager, pointed out that using the aggregated de-personalized data from the bookmarks will work to make each user's personal Internet experience more valuable. He explained that "while we might use the aggregated and de-personalized data internally to build better services, we have no plans or interest in selling or giving that information to 3rd parties."

Privacy experts agree that Netscape should post a very clear, easy-to-find, and pro-user privacy policy that addresses the Netcenter bookmark storage system. "Users should know, before they submit their bookmarks, what they are getting into, and have the opportunity to opt into and out of any secondary use of that information, in a non-confusing and up-front manner," said McCandlish of the EFF.

Lori Fena, chair of the EFF and TRUSTe (a privacy initiative dedicated to building users' trust and confidence on the Net), said that most users don't understand what goes behind the scenes, adding that "the capturing of Web bookmarks is not unlike the capturing of a personal video rental list." She noted that, through the 1988 Bork Law, created after unsuccessful Supreme Court nominee Judge Robert Bork's video rental list was released, the publication of such information is illegal.

When contacted by Basex late on Friday, Netscape Vice President Peter Harder, who had not been aware of the issue, agreed with Basex' contention and promised that Netscape would create and post a specific policy for the bookmark feature.

Reported by virtual.basex

Copyright 1998 The Basex Group, Inc.

All rights reserved.

All data, opinions, and projections are based on Basex' judgment at the time of publication and are subject to change.

The Basex Group is a research and consulting firm that helps its clients bridge the gap between technology and the underlying business process. Its virtual.basex technology advisory service covers new and emerging technologies in the areas of knowledge management, virtual communities, collaborative computing and electronic commerce. virtual.basex subscribers use technology to gain a competitive advantage for their organizations and learn about new ideas and solutions to problems. Visit us at http://virtual.basex.com. E-mail Jonathan Spira at [e-mail] or call him at [phone] x113 for more information.

   CONTACT:  The Basex Group
              Jonathan Spira
              212/725-2600 x113
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